Indian Renewable Energy Development Agency Ltd (IREDA) has signed an MoU with India Infrastructure Finance Company Ltd (IIFCL) to finance renewable energy projects. 

The MoU will empower IREDA and IIFCL to engage in co-lending/ co-origination and loan syndication for all categories of renewable energy projects, including small hydro projects.

What is the purpose of IREDA?

• Indian Renewable Energy Development Agency Limited (IREDA) is a Miniratna (Category-I) government of India enterprise under the administrative control of the ministry of new and renewable energy (MNRE). 

• IREDA is a public limited government company established as a non-banking financial institution in 1987.

• It is engaged in promoting, developing and extending financial assistance for setting up projects relating to new and renewable sources of energy, energy efficiency and conservation.

• Since its inception, the company has played a catalytic role in developing the market for financing renewable energy (RE) and energy efficiency (EE) projects. 

• IREDA with years of techno-commercial expertise, plays a catalytic role in the RE project financing which gives confidence to the financial institutions/banks to lend in the sector.

• IREDA achieved a historic milestone by disbursing loans of Rs 21,639 crore and sanctioning loans of Rs 32,587 crore in the financial year 2022-23. This marks the highest annual loan disbursement and sanction in the company’s history.

India Infrastructure Finance Company Ltd (IIFCL)

• IIFCL is a wholly-owned government of India company set up in 2006.

• It provides long-term financial assistance to viable infrastructure projects under the Scheme for Financing Viable Infrastructure Projects through a Special Purpose Vehicle called India Infrastructure Finance Company Ltd (IIFCL), broadly referred to as SIFTI. 

• The organisation gives overriding priority to Public-Private-Partnership (PPP) projects.

• IIFCL has been registered with the Reserve Bank of India as a Non-Banking Finance Company – Infrastructure Finance Company (NBFC-IFC) since September 2013.

• As a long-term lending institution, IIFCL is amongst the most diversified public sector infrastructure lenders in terms of eligible infrastructure sub-sectors and product offerings. It has the mandate to finance both greenfield and brownfield projects, covering direct lending, takeout finance, refinance and credit enhancement, across all infrastructure sub-sectors.

• On a standalone basis, IIFCL has made cumulative gross sanctions of about Rs 2.26 lakh crore to more than 700 projects under direct lending, takeout finance and refinance, credit enhancement, InVIT and bonds as on June 30, 2023.

IIFCL has set up three wholly-owned subsidiaries:

a) IIFC (UK)

b) IIFCL Asset Management Company Limited (IAMCL)

c) IIFCL Projects Limited (IPL).

Manorama Yearbook app is now available on Google Play Store and iOS App Store